How Do I Apply a 3% Salary Increase: Gross, Basic, or Variables?

Hi friends, for the very first time, I have been told to make an appraisal of 3% for a few employees. How should I make this appraisal? Should I increase the salary by 3% in the gross salary, or should it be 3% of the basic salary? One more thing I want to know is, should I increase this 3% in the basic salary or in variables?

Thank you.

It would be good to first understand if it is a performance appraisal or a revision of salary. Since it looks like what you have been asked for is to initiate a performance appraisal for 3% of the population, which in this case might be for mid-level to senior-level managers and above, depending on the size of the organization. But if 3% is the revision percentage, then it normally applies to CTC. Ensure you double-check.

Dear Premlata,

When people raise ambiguous queries, experts do not seem to respond. For example, as psreeniv has asked, are you supposed to carry out an appraisal or award a 3% pay rise based on the appraisal carried out?

The correct way of saying for some staff is "a few." When you say "few," it means for none. Please see Difference between 'few' and 'a few'.

Have a nice day.

Regards,
Simhan
A retired academic in the UK